Debtors cutting back on Christmas, research shows

Britons are spending less on Christmas this year as the recession continues, with the cost of the festive season 35 per cent less than it was ten years ago.

This is according to research from Saga, which found that many are spending what is affordable, with 52 per cent using their salary to fund the yuletide period without turning to their savings or taking on extra debt.

The amount spent on presents has also fallen, the study revealed, with every adult intending to spend £435 on gifts. In 1999, this was £516 and the number of people planning to pay for Christmas using credit cards has stayed the same as a decade ago – 16 per cent.

Over-50s appear to be exercising more caution in this respect, however, with 32 per cent stating they will clear the balance on their cards straight away.

Saga’s findings support those from LV=, which recently revealed that people are searching for different ways to save money this Christmas, with 8.7 million looking to pre-Christmas sales and 23 per cent reducing their amount of socialising.

By Sarah Adie